Maruti Suzuki, Bosch among over 70 firms finalised for auto components PLI scheme

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The Union government on March 11 finalised more than 70 companies for auto components PLI scheme, according to a report by CNBC-TV18.

PLI stands for production-linked incentive scheme.

Prominent names such as Maruti Suzuki, Toyota Components, Delphi TVS, Hella India, Dana Group, Bosch, Minda Industries, Tata Auto Components, Bharat Forge are on the list, the report added.

The government also selected firms from Germany, United States, Netherlands, Japan, South Korea, France and Italy for the scheme. The selection has been made for 103 components under champion component scheme.

On November 11, 2021, the Union Cabinet approved the Production-Linked Incentive (PLI) scheme for 10 sectors. These were pharmaceuticals, automobiles and auto components, telecom and networking products, advanced chemistry cell battery, textile, food products, solar modules, white goods, and specialty steel.

Among the components selected for auto components PLI, around 8-13 percent of them include safety items, flex fuels, CNG, LNG, emission control devices, passenger convenience items, fuel efficiency components and sensors. While 13-18 percent constitute incentive for components of hydrogen and electric vehicles.

Earlier on March 7, Commerce and Industry Minister Piyush Goyal said that the Budget announcements and steps like production-linked incentive (PLI) scheme are efforts in making the country self-sufficient and achieve sustainable development.

"Our budget, both last year and this year, and the 'Aatmanirbhar Bharat' programme including our PLI scheme are efforts in our direction towards becoming self-sufficient and also…our commitment towards a sustainable future for India,” he said addressing an interactive session on environment at the India Pavilion at Expo 2020 Dubai.

The government had approved 20 applicants of the Production-Linked Incentive (PLI) Scheme for the automobile and automobile component industry under the “Champion OEM Incentive Scheme” on February 11, 2022.

Ford, Tata Motors, Suzuki, Hyundai, Kia, and Mahindra & Mahindra are among the 20 companies that will be eligible for receiving incentives under the PLI Scheme for the automobile and auto components sector, the government had said.

Until January 9, 2022, 115 firms had filed applications under the PLI Scheme for the automobile and auto component sector, which was notified in September last year.

Commenting on the development, a top official said on February 14 that the PLI for the automobile and auto components sector will lead to the creation of 7.5 lakh additional jobs and incremental production worth Rs 2,31,500 crore over the next five years.